Altria Earnings Fall Short Amid Lower Cigarette Sales and Competition

Tobacco giant faces challenges from unauthorized disposable e-cigarettes and pricing pressure in nicotine pouches market

Jan. 29, 2026 at 5:55pm

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Altria, the tobacco company behind Marlboro cigarettes, reported flat earnings in the fourth quarter due to declining cigarette sales and competition from unauthorized disposable e-cigarettes and pricing pressure in the nicotine pouches market. The company's revenue slid 2% to $5.8 billion, and its adjusted earnings per share of $1.30 fell short of Wall Street expectations.

Why it matters

As a major tobacco company, Altria's struggles reflect the broader challenges facing the industry, including the rise of alternative nicotine products and regulatory pressure. The company's inability to capitalize on the growing nicotine pouches market, which is dominated by Philip Morris International's Zyn brand, raises questions about Altria's ability to diversify its business away from traditional cigarettes.

The details

Altria said cigarette sales declined due to the introduction of unauthorized disposable e-cigarettes, which are often cheaper and come in flavors. The company's nicotine pouches, sold under the on! Plus brand, saw their market share shrink to about 13%, down from 18% a year earlier, as they faced pricing competition from Zyn. Altria also took a $1.3 billion charge on the value of its vaping business after international trade regulators ruled that its NJOY Ace products infringed on patents held by Juul.

  • Altria reported its fourth-quarter earnings on January 29, 2026.
  • In December 2025, the FDA officially authorized Altria's on! Plus nicotine pouches in several flavors.

The players

Altria

A major tobacco company based in Richmond, Virginia, and the maker of Marlboro cigarettes.

Billy Gifford

The CEO of Altria.

Philip Morris International

A tobacco company that dominates the nicotine pouches market with its Zyn brand, which accounts for more than two-thirds of sales in the category.

Juul

A vaping company whose patents were ruled to be infringed upon by Altria's NJOY Ace products, leading to a $1.3 billion charge for Altria.

NJOY

A vaping company that Altria acquired for $2.75 billion in 2023, but whose products were blocked from the U.S. market due to the patent infringement ruling.

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What they’re saying

“We have long advocated for stronger enforcement against illicit products.”

— Billy Gifford, CEO, Altria

“Certainly as we introduce at retail we'll have various introductory price promotions. We feel very excited about the differentiation we have and the consumer feedback.”

— Billy Gifford, CEO, Altria

What’s next

Altria plans to expand its FDA-authorized nicotine pouches at the regional and then national level later this year, with the company saying it will use various introductory price promotions as part of its strategy.

The takeaway

Altria's struggles highlight the broader challenges facing the tobacco industry, including the rise of alternative nicotine products and regulatory pressure. The company's inability to capitalize on the growing nicotine pouches market raises questions about its ability to diversify its business away from traditional cigarettes.